CPIM-MPR Questions And Answers

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Exam Name: CPIM Master Planning of Resources

Updated: 2020-10-23

Q & A: 105

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Question No : 1

Production is being planned to emphasize the utilization of a critical and very expensive piece of capital equipment.
Which of the following production planning strategies should be used?
A. Chase
B. Level
C. Cost-based
D. Combination
Answer: B

Question No : 2

During which of the following process steps of sales and operations planning would resource planning be carried out?
A. Demand planning phase
B. Supply planning phase
C. Pre-sales and operations planning meeting
D. Executive sales and operations planning meeting
Answer: B

Question No : 3

The question below is based on the distribution center requirements shown below:



How many units of product X should be planned to satisfy the demand for period 6?
A. 100
B. 80
C. 60
D. 40
Answer: B

Question No : 4

Which of the following tradeoffs should be considered to improve the performance of a distribution network?
A. Reduce cost but improve customer service by using full truckload or carload shipments
B. Increase inventory turns but decrease costs by shipping more frequently
C. Improve profit but decrease inventory by not scrapping obsolete product
D. Improve fill rate but decrease inventory turns by adding safety stock
Answer: D

Question No : 5

Which of the following costs is most likely to decrease when the number of warehouses in a distribution network increases?
A. Inventory costs
B. Packaging costs
C. Transportation costs
D. Handling costs
Answer: C

Question No : 6

The question below is based on the following information:



A company has chosen to execute a level production plan. What is the production rate per period?
A. 108
B. 110
C. 112
D. 125
Answer: A

Question No : 7

A company is transitioning from a make-to-stock production environment to a finish-to-order production environment.
Which of the following outcomes is most likely to occur as a result of the transition?
A. Inventory levels will be increased.
B. Less training will be required in the distribution centers.
C. Planning or phantom bills of material will be created.
D. Forecasts will become more detailed.
Answer: C

Question No : 8

In a make-to-order environment, if cumulative production exceeds cumulative demand, which of the following outcomes will result?
A. Excess capacity will exist.
B. Inventory will increase.
C. The backlog will increase.
D. The backlog will decrease.
Answer: D

Question No : 9

An intensive distribution channel strategy would be most appropriate for which of the following types of product?
A. Special tools
B. Capital equipment
C. Designer clothing
D. Carbonated beverages
Answer: D

Question No : 10

The primary objective of distribution network design is to balance total distribution cost with which of the following factors?
A. Forecasted demand
B. Manufacturing capacity
C. Product availability
D. Product costs
Answer: C

Question No : 11

A firm manufactures four product families in a single facility using one production line for each product family. It has selected the hybrid approach to production planning and has specified that there will be no more than four changes in production rates per production line in a year.
Resource planning will have to be performed for:
A. each item when there is a change in the production rate for the family.
B. each production line for each month in the production planning horizon.
C. each product family and production line weekly.
D. each product family when there is a change in the production rate for the family.
Answer: D

Question No : 12

Which of the following forecasting methods is most appropriate for projecting demand for a product family?
A. Single exponential smoothing
B. Simple average
C. Focus
D. Pyramid
Answer: D

Question No : 13

An outcome of top management's participation in sales and operations planning involves the:
A. delegation of trade-off resolutions to middle management.
B. investigation of detailed trade-offs by top management.
C. definition of trade-offs by top management.
D. resolution of broad trade-offs by top management.
Answer: D

Question No : 14

A forecasting method that responds slowly to changes in demand would be most appropriate when the historical demand pattern shows a major:
A. seasonal component.
B. random component.
C. trend component.
D. cyclical component.
Answer: B

Question No : 15

Sales has identified an opportunity to develop a new market for a product family and requested an increase in the production plan.
Which of the following actions would be most appropriate in this situation?
A. The proposed change should be presented to top management for a decision.
B. The production plans for other product families should be reduced.
C. The sales and operations plan should be regenerated.
D. The request should be rejected.
Answer: A

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